List of Important Manufacturing Terms

3D printing

3-Dimensional Printing also known as additive manufacturing, is the process of compiling thin layers of material, generally polymers or metals to produce a 3-dimensional structure with ease. Designs are rendered in a Computer-Aided Design (CAD) or other 3D software. These designs can then be printed layer by layer producing intricate shapes and designs that would prove challenging or impossible when done by hand.

A

Activity-based costing → An accounting process, activity-based costing assigns indirect or overhead costs to all products and services based on the consumption by each. This process allows for a more accurate reflection of indirect costs by recognizing certain products or services that require more time than others.

Additive manufacturing → As technology moved from analog to digital, additive manufacturing became possible. Also known as 3D printing, additive manufacturing is the process by which a computer-rendered (CAD) model design is produced by a machine layer by layer.

Advanced manufacturing → Advanced or innovative manufacturing uses the latest generation of manufacturing technology and improves work/process systems through the integration of advanced technology, allowing for a smoother more efficient manufacturing process.

Agile manufacturing → The process of quickly responding to consumer needs, agile manufacturing incorporates tools and training to respond to changes in market demands thus reducing lead times across organizations. 

Andon board → Andon boards are signaling devices displaying the current state of a manufacturing line. Its purpose is to notify management, maintenance teams and other employees of a current or emerging problem in the manufacturing process. 

Automation → Automation is the manufacturing process or system of reducing or eliminating the need for human intervention during manufacturing. 

B

Benchmarking → Benchmarking is the practice of comparing one plant or organization’s performance and processes to industry standards. 

Bill of materials → Bill of materials (BOM) is the list of all raw materials that go into the final assembly of a product. This bill of materials includes all assemblies, subassemblies and the number of parts used in the production of the end product. 

Bottleneck → Bottlenecking or the bottleneck is the point in the production line where congestions occur due to an influx of products that cannot be processed quickly enough. 

C

Corrective Action Preventative Action (CAPA) → The process of investigating, identifying and addressing issues or problems where corrective action is taken to eliminate the root cause of the issues preventing further action from needing to be taken. This method looks at the manufacturing process, customer complaints and internal audits to identify areas where non-conformities or undesirable outcomes occur and seeks to prevent the issues in the future. 

Corrective Action Request (CAR)‍ → CAR or Corrective Action Request is a request sent to a supplier or manufacturer to open an investigation into the occurrence of nonconformity or a defect of a specific product. ‍

Cellular manufacturing‍ → Cellular manufacturing is a manufacturing process that produces similar parts, products or subassemblies within a single cell of machines. A cell is a well-defined group, area of machines or production unit within a manufacturing plant responsible for producing families of parts or similar products. 

Change management‍ → Change management is the formal process of creating, reviewing and implementing change in the manufacturing process. Change typically begins when a machinist, supervisor, or engineer identifies a problem within the manufacturing process. 

Change order →  An engineering change notice or change order is a request or proposal to modify the current manufacturing process or equipment. 

Changeover → Simply put, changeover is the process of converting production lines or machines from producing one product to another. 

Child item → A child item is an assembly or subassembly of a final product that appears in the product’s bill of materials (BOM). The items are generally said to be the child of the final product.

Contract manufacturer (CM) → A Contract Manufacturer is a firm hired by a company to focus on the manufacturing or assembly of all or part of the final product.

Compliance → Manufacturing compliance is the technical, legal and corporate regulations imposed on an organization that must be followed for the production and marketing of products. 

Compliance mark → The compliance mark is a physical mark placed on the product or packaging stating that a product has met the regulatory standards and specific requirements. 

Composites → Composites are materials composed of two or more materials with significant differences in chemical or physical properties. 

Computer-Aided Design (CAD) → Computer-aided design (CAD) is the use of computer-based software to assist in the designing and rendering of 2- and 3D models, replacing traditional drafting. 

Computer-Aided Manufacturing (CAM) → In automating the manufacturing procturing (CFM) is a method of manufacturing where the materials being processed are constantly moving through the production line. 

Continuous-Flow Manufacturing (CFM) → Continuous-Flow Manufaroduction, where materials only move through the production line at a specified time or in specified amounts. CFM smooths the process of manufacturing by ensuring constant movement through the production line until the final product is complete.

Cross-training → Cross-training refers to the process of training employees in several skills and positions allowing them to work adequately in multiple areas of the organization. 

Cycle time → The cycle time refers to the time required to complete a full cycle of production in manufacturing. More specifically, the cycle time is the time from the start of production to the delivery of the final product. 

D

Document change request (DCR) → As a part of change management and systems engineering, a DCR or document change request is a call for the adjustment of a system or process in which a problem has occurred. 

Design history file (DHF) → A Design History File or DHF is the collection of records documenting all stages of the design phase. The DHF shows the development process through the collection of drafts, detailing decision making, meeting notes, test data and reports that lead to the production and manufacturing of the final product. 

Device history record (DHR) → The Device History Record (DHR) is a collection of records containing the production history of all versions of a product. The DHR includes the serial and lot numbers of the products produced, and any complaints or issues that are lodged against the product.

Device master record (DMR) → A Device Master Record (DMR) is the collection of records containing the procedures and specifications for manufacturing a finished product used in quality management systems. 

Digital manufacturing → Digital manufacturing refers to the process of improving product design and manufacturing through the integration of information systems across the supply chain. Digital manufacturing aims to reduce the time and cost of manufacturing by digitizing all processes.

Discrete manufacturing → Discrete manufacturing is a term used to describe the production of physically distinct products. These products generally can be identified either by serial number or by physical appearance examples include cars, smartphones or toys.

E

Engineering Change Notice (ECN) → An Engineering Change Notice (ECN) is an official notice in change management that a change has been approved. The ECN communicates the details of the approved change and authorizes the manufacturer to implement the change to the production.

Engineering Change Order (ECO)  → The Engineering Change Order (ECO) is the documentation outlining the proposed change to the design, lists the product or parts affected and requests review and approval from the manufacturers. The ECO is used to make modifications to material, assemblies and subassemblies and other types of product information.

Engineering Change Request (ECR) → An Engineering Change Request (ECR) is the change request listing proposed improvements or problems with components or assemblies. Generally, the ECR precedes the engineering change order (ECO).

Electronic Design Automation (EDA) → Electronic Design Automation (EDA) are software tools used to develop integrated circuit systems and printed circuit boards. EDA is also referred to as electronic computer-aided design (ECAD).

Enterprise Resource Planning (ERP) → Enterprise Resource Planning (ERP) is a business strategy used to track activities like purchasing, inventory and orders. ERP is the ability to deliver an integrated suite of business applications to effectively model and analyze data across departments including finance, HR, distribution, manufacturing and the supply chain.

F

Feeder lines → Feeder lines are a special assembly line where pre-assembly tasks can be performed off the main production line. 

Field Failure Request (FFR) → A Field Failure Request is a type of change request which details a problem or non-conformity with the product as observed in the use of the product by the end-user known as the “field.”

Form, Fit and Function (FFF) → The Form, Fit and Function is a framework description of an item’s identifying characteristics. Each of the aspects helps engineers match parts to the needs of the products. 

G

Good Manufacturing Practices (GMP) → Good Manufacturing Practices (GMP) is a system and set of guidelines and best practices for managing each aspect of production that impact the quality of a product. As part of quality assurance, good manufacturing practices ensure that standards and regulations are met and products perform to specifications without failure.

I

Industry 4.0 → Industry 4.0 is commonly referred to as the fourth industrial revolution. It is characterized as the name for the current trend of automation and data exchange in manufacturing technologies. Industry 4.0 bridged the gap between physical production and manufacturing and digital manufacturing.

Item master → The Item master is the record listing key information regarding inventory items. Commonly, item description, weight, dimensions, quantity on hand and cost of goods are listed. 

ISO 9000 → The International Standards Organization 9000 is an international quality-process auditing program. Based on a number of quality management principles that manufacturers adhere to ISO 9000 ensures consumers are consistently getting good quality products.

ISO 13485 → International standards organization 13485 is the international quality-process auditing program specific to the manufacturing of medical devices. 

ISO 14000 → Pertaining to environmental management the International Standards Organization 14000 set standards and guidelines for environmental management systems. This standard offers assurance to stakeholders that environmental impact is accurately being measured and improved.

J

Just-In-Time (JIT) → Just-in-Time (JIT) manufacturing is a technique to reduce setup times, inventory, and waste, reduce cycle time and improve efficiency in a manufacturing plant. In JIT management, raw materials are ordered to coincide with the production schedule minimizing inventory on hand.

K

Kanban → Kanban, a Japanese term meaning billboard or signage, is a lean manufacturing method of managing and improving workflow across human production. 

Kaizen → Kaizen is a Japanese business philosophy meaning “continuous improvement.” The word refers to incremental improvements of manufacturing through a methodical process to create value and reduce waste along the production cycle.

Kitting → Kitting is a process where assemblers are given containers of all parts needed for the production of a product. Kitting eliminates the need for constant movement inventory and tools, as all items or subassemblies are placed into a kit for production. The kit is placed at the point of use through the production line where it will be used.

L

Lead time → Lead time is the latency between a customer’s initial purchase and the delivery of the product. It is summed up as the total time a customer must wait to receive a product after placing an order. 

Lean manufacturing → Lean manufacturing is a practice that aims to reduce wasted time, effort and other resources in the production process without sacrificing productivity and efficiency.

M

Made-to-spec → Made-to-spec is a term that describes a product that is made to the specification of an internal design or by a supplier.

Markup → A markup of price spread is the difference between the selling price of a product and the cost incurred to manufacture it. The markup is generally expressed as a percent over the cost incurred.

Manufacturing Change Order (MCO) → A Manufacturing Change Order (MCO) is a change order used to make a manufacturing change to a product. Manufacturing change orders do not require a design change.

Manufacturing Change Request (MCR) → A Manufacturing Change Request (MCR) is a change request used to propose a new change to the manufacturing process that does not require a change in the design to the product.

Manufacturing cost → The manufacturing cost is the cost directly related to the production of a product. This includes direct and indirect labor, equipment and maintenance, manufacturing support and overhead. 

Manufacturing cycle time → The manufacturing cycle time is the time used in the production of a product. The manufacturing cycle time starts the moment a customer order arrives to the plant floor until the completion of all product manufacturing, assembly, and testing has been completed. 

Manufacturing Execution System (MES) → Manufacturing execution systems (MES) are digital manufacturing systems used to document and trace the conversions of raw materials into finished products. 

Monument → A monument is any design, scheduling or production technology with scale requirements necessitating that designs, orders and products be brought to the machine to wait in queue for processing. 

Material requirements planning (MRP) → Material requirements planning (MRP) is the computer-based process of preparing, scheduling and controlling inventory and raw materials to be purchased and used in the manufacturing process. MRP is a part of push manufacturing as raw materials are purchased based on forecasted demands.

N

New Product Development (NPD) → NPD or New Product Development is the process of conceptualizing, designing, planning and commercializing a new product to be brought to market. NPD is referred to as product development. 

NPD process → The New Product Development process is a disciplined set of tasks describing the means by which a company repetitively converts ideas into salable products or services.

O

Overall Equipment Effectiveness (OEE) → Overall Equipment Effectiveness (OEE) is a manufacturing best practice for measuring productivity in a plant. Measuring the utilization of raw materials, time and machinery, OEE offers a percentage score, where 100% indicates firms are manufacturing products as efficiently as possible with no defects and no lag time. 

Original Equipment Manufacturer (OEM) → An OEM is the Original Equipment Manufacturer of a product that is sold by another company. T

Off-the-shelf → Off-the-shelf is a product that is sold by the manufacturer as it is produced with no additional changes or modifications. 

P

Parent item → A parent item is a product that contains a secondary product or subassembly (child item) in its bill of materials.

Product Data Management (PDM) system → Product Data Management System (PDM system) is a database system used in product lifecycle management to hold all CAD files, parts and assembly, models and product drawing.

Product Lifecycle Management (PLM) → Product Lifecycle Management is the management of product records, including bills of materials, specifications, CAD files, revisions and changes, from the initial design and prototype to the end-of-life delivery and service.

Point of use → Point of use is a technique of distributing products and tools to the point in the manufacturing process that they will be used and are needed.

Poka-yoke → Is a Japanese term meaning “mistake-proofing.” Poka-yoke is a system within manufacturing that reduces product defects by addressing human errors as they occur through the production cycle.

Process control → Process control is the monitoring of the production process through software.

Process manufacturing → Process manufacturing is also known as batch manufacturing is the production of products that are unable to be separated into physically distinct items. Products produced in process manufacturing are referred to as “batches.”

Product development cycle → Product development cycle or, as it is often called, time-to-market, is the period from when product design begins to the time that the final product becomes available for purchase. 

Product record → The Product record is a general term describing all design, manufacturing, quality, sales and information about a product.

Prototype → A prototype is a sample build of a product. 

Pull production → Pull production is the process in which products are made only when the customer has ordered or “pulled” a product, and not before. 

Push production → Opposite to pull production, push production is the process of manufacturing that uses market estimates rather than customer orders to initiate production. Push production is better suited for meeting market demand.

Q

Quality Management System → A Quality Management System documents the aspects of a company’s design and operational controls. The system includes monitoring, issue reporting, improvements and changes, in order to ensure that product design and manufacturing are repeatable. 

R

Rapid prototyping → Rapid prototyping is a technique used to quickly produce a model of a part or assembly.

Redline → A redline is a marking of an assembly drawing or bill of materials used to indicate a modification or change in the process and manufacturing of a product. ‍

Revision → Revision is a snapshot of a product, part, process, program, design or document at any moment in its development often in the bill of materials. 

Revision control → Revision control is the process of tracking and documenting changes to a product, part, process, program, design or document.

Restriction of Hazardous Substances (RoHS) → Restriction of Hazardous Substances is a mandate issued by the European Union, which restrict the usage of six hazardous substances –– lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls and polybrominated diphenyl ethers.

Right-sizing → Right-sizing or “right size machinery” is the process that challenges the complexity of the equipment. Right-sized machines are best used in cell manufacturing when a cell only produces one type of product.

Robotics → Robotics is the intersection of mechanical or electrical engineering and computer science used to design, construct, operate, and use robots. Robotics includes computer systems for control, sensory feedback, and information processing.

Return Material Authorization (RMA) → Return Material Authorization (RMA) is a financial and work order tracking key used to identify a returned item’s origin.

S

Supplier Corrective Action Request (SCAR)  → Supplier Corrective Action Request (SCAR) is a change request that describes an issue with a part, process, or component of a product from a manufacturer that asks for a resolution.

Six Sigma → Six Sigma is a data-driven approach and quality measure for eliminating product defects in manufacturing. It is one method of preparing and controlling the compliance of processes and products with quality standards. A six sigma process guarantees that production is defect-free 99.999966% of the time.

Smart manufacturing → Smart manufacturing is a term that utilizes computer-integrated manufacturing, adaptability, design changes and digital manufacturing. 

Single-minute exchange of dies (SMED) → Single-minute exchange of dies (SMED) is a method of lean manufacturing to reduce waste during the manufacturing cycle. SMED provides efficient and quick ways of converting from one product to the next.

Standard Operating Procedure (SOP) → Standard Operating Procedure (SOP) is a written document or instruction detailing the steps and activities included in a process or procedure. 

Supply chain → The supply chain is the sequence of processes involved in the manufacturing, transportation and selling of a product. 

T

Takt time → Describes the rate of production to sales and is the rate at which customers require finished units. The takt time is the time interval between the beginning of the manufacturing of one first and the start of the next.

V

Value chain → The value chain is the process of turning an idea into a marketable product.